Best Credit Card by Credit Quality is designed for those who care about the credit quality most when they apply for a credit card. The type of account under your name (also known as your "credit portfolio") gets a smaller weight in your score. FICO and Vantage Score give consumers with multiple credits higher scores, including revolving credit, such as credit cards, installment loans, such as mortgages. In order to get your score into an excellent range, you should make sure that you have multiple types of credit records on your credit.
FICO Score Range
300-579 very bad
580-69 not good
740-799 very good
Vantage Score Ranges
300-549 very bad
550-64 not good.
The lender will use your credit score to determine your credit and the terms of the loan, including interest rates. A good credit score can help you buy more valuable things, such as houses, and other things that can be used to build wealth. A good credit score can help you get a discount rate on the mortgage of the house, which can save you thousands of dollars in 30 years compared to just a good rate.
In addition, credit card issuers will offer you special allowances and bonuses based on your credit score to encourage you to apply for their products. For example, if your credit score is excellent, you can use your credit card reward to fund holidays and hotel accommodation, and the cost can be greatly reduced, even without spending money.
1. Registration bonus
Credit card signing bonuses are the biggest strategy for credit card issuers to gain access to your business and can be one of the most valuable features on the card, worth hundreds of dollars, or even more than $1,000. For points or mileage reward cards, pay attention to 50,000 points or more. For cash return cards, you should be able to get at least $150 in registration bonuses.
2. Continuous rewards
Your ongoing purchase will also be generously rewarded. In today's market, you should be eligible for a card that offers an average discount of at least 1.5% per dollar (when you combine all bonus categories), and you should pay attention to cards that have a 2% return. If you are proficient in how to make money and use your rewards, you can push your income rate even higher.
You should also be able to find some plum blossom transactions that finance balance transfers or new purchases of 0%. Although the average introduction period is 12 months, you may meet an 18-month or longer introduction period.
4. Allowances and benefits
In addition to rewards and 0% financing, your welfare list should exceed the standard list of MasterCard or Visa benefits. Depending on the type of card and whether you charge an annual fee, you should expect to have a complete travel and purchase protection, special allowances, such as concierge services and ticket events, and a list of travel credits - for luxury cards - Lounge visits and hundreds of dollars.
5. interest rate
You should be eligible for the lowest interest rate on the card. The "minimum" of course depends on the type of card. Real low-interest cards may start at 8% or 11%. Reward cards are often more expensive, starting with about 14% to 16%.
1. Pay bills in time
Because payment history is the most important factor in your credit score, you need to avoid overdue payments, especially credit card or loan balances, because the lender will report your account balance and payment to the credit institution every month. Pay bills in advance to ensure that you pay at least the minimum amount due.
2. Maintain low credit utilization
Credit utilization is another major factor affecting credit ratings in your credit score, so you need to keep your account balance low. The lower your balance, the better. If you buy a large sum of money, pay it back immediately. Pay your bills at the end of the month and try to pay them before the closing date.
3. Don't apply for too many cards at a time.
This also means that you should not be crazy about registering new credit card applications, because each application will query your account, which will temporarily reduce your credit score. It is also a wise choice for a person in charge to apply selectively.
4. Pay close attention to your credit
Check your credit card account and check your credit report regularly to map your progress, and keep an eye on any problems and inaccuracies. For example, if you find that you use more than 30% of the available credit cards in one month, you should try to reduce the use of credit cards in the next month.
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